South-based lender Lakshmi Vilas Bank today cut deposit rates in two buckets by up to 0.30 per cent.
The bank reduced the rate of interest in the 181-270 day maturity by 0.30 per cent to 8 per cent per annum, while in the 91-180 day maturity, it has effected a 0.25 per cent reduction to 7.75 per cent, it said in a statement.
The rate revisions are effective today, it said.
The interest rates in the system have been on a declining trend for the last few months, which have seen the RBI cut its key rates thrice by a cumulative 0.75 per cent. Bankers have been complaining of credit growth being low and carrying excess liquidity.
The bank also introduced a new maturity in its term deposit buckets, by offering a 7-14 day deposit product.
Interestingly, at 5 per cent per annum, the interest rate offered on the newly introduced short term product is at par with the minimum rate on the saving bank (demand) deposit.